Business Valuation - How Investors Value Companies

How do investors value companies?

This is one of the most frequently asked questions I get from entrepreneurs and also one of the toughest. It can be especially challenging for earlier stage companies that do not have a financial history they can use to back up the story they are telling investors.

For me, the number one thing I look at when I invest into early stage companies is the CEO. Is the CEO a rock star? Can the CEO make the molecules move and rally people behind their vision? Does the CEO the top three qualities I look for: commitment, humility, and authenticity. If they check these boxes, then I take a look at their company to see if will be a worthy investment. 

To help me better answer this question I brought in two of my buddies who happen to be experts on this topic: Curt Rocca, the founding partner at DCA Capital, and Lokesh Sikaria, the founding partner of Moneta Ventures. They have incredible track records as investors and we are going to find out how they value companies and pick the winners. 

On this episode you will learn investors methodologies for valuing a company, the different factors that affect the valuation of your company, and an inside look at what investors think when they look at potential investments. 

Valuation is extremely important to get right if you want to get an investment. Learn from two guys that look at hundreds of deals every year.